Strong Tower

The Crippling Cost of Self-Insuring Long-Term Care


Ash Toumayants, president of State College, PA-based financial services planning firm Strong Tower Associates, wrote an article for Investopedia about the cost of self-insuring long-term care. He discusses why many individuals opt out of LTC insurance as well as considerations that people looking to purchase LTC insurance should keep in mind.

self-insuring long-term care

“Planning for long-term care in retirement can be a struggle because the future is unpredictable, but without long-term care insurance, expenses can rise quickly if a retired person falls ill. If a retired person falls ill, they often rely on long-term care, such as in-home nursing care or nursing home services. Without LTC insurance, the out-of-pocket expenses can rise quickly. Regardless of how large your retirement nest egg is, the threat of long-term care jeopardizes the wealth and assets of any retiree and their family.”

“Many individuals opt against purchasing LTC insurance after learning about the steep price tag. From an economic standpoint, it seems smarter to self-insure should an individual ever require long-term care. Many retirees might think, “It will never happen to me – I’ll never need long-term care because I’ll never get sick.” However, according to the U.S. Department of Health and Human Services, 70% of people turning 65 years old will need long-term care. For that 70%, covering the cost of long-term care without insurance can cut through retirement savings quickly…”

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